Thursday, May 4, 2017

Break out the pitchforks and torches

***MONDAY, MAY 8***

On Monday, May 8, the Pacifica City Council will vote on a comprehensive Rent Control Board, “Just Cause” Eviction, Relocation Payments ordinance that has been drafted by out-of-town attorneys, behind closed doors, with no oversight or input from the public.

MONDAY, MAY 8 at 6:30 PM
Pacifica City Council Meeting
2212 Beach Blvd, Pacifica, CA  94044


Rent control will create a stagnant housing market in Pacifica.  As household incomes naturally increase, instead of buying a home, renters in a rent-controlled environment are incentivized to stay in the subsidized unit – even when they are making well over $200,000 annually, preventing scarce affordable housing from being available to those who really need it.

Rent control will reduce the number and quality of rental housing units available in Pacifica.  Rent control exacerbates a housing shortage by incentivizing tenants to stay far longer in more affordable units. When government places an artificial control on rent, property owners are not able to adjust rents to accommodate increased costs or unexpected circumstances and properties deteriorate.

Rent control will lead to higher rents in Pacifica.  Although people think rent control will lead to lower rents, the exact opposite is true. The rents of available apartments in rent controlled cities are dramatically higher than rents in cities without rent control. In cities without rent control, available units exist all along the spectrum from low-priced to high-priced. In rent controlled cities, the only units available are the highest priced, far above the median rent.  When property owners have the freedom to adjust their rents as needed to accommodate costs, they are able to keep rents low.  Under rent control, no property owner will keep rents low, as their flexibility has been eliminated.

Rent control will take the investment, life savings, and retirement from people in Pacifica who have invested their money in real estate.  Many Pacificans have unconventional retirement plans. Rent control ordinances that prohibit property owners from asking for market rate rents unfairly steal from people’s retirements.

Rent control will bankrupt Pacifica.  Rent control ordinances create substantial administrative costs.  Rent controls require the creation of convoluted bureaucratic systems. Rental property must be registered, detailed information on the rental property must be collected, complex systems for determining rents must be created, and processes for hearing complaints and appeals must be established. Pacifica is currently over $700,000 in debt.  By the end of next year, Pacifica will be well over $2 million in debt.

Rent control will disproportionately harm Pacificans in affordable housing. Poorer families suffer a marked decline in existing housing as the quality of existing housing falls in response to reduced maintenance expenditures. The middle class have greater ability to move out, but poorer families lack this option. In addition, poor families are at a substantial disadvantage when it comes to finding new housing. In a tight market – as we currently have – there are more people looking for housing than available rental units, giving housing providers far more discretion in choosing among competing potential customers. In rent-controlled markets, housing providers turn to factors such as income and credit history to choose among competing renters.

Rent control means expensive consumer entry costs. In many rent-controlled communities, prospective consumers must pay substantial finder's fees to obtain a rental unit, due to the scarcity of available housing. And, in some rent-controlled areas, a "gray-market" in rental housing has developed in which units are passed among friends or family members, or new consumers may be required to pay "key money" or to make other payments to current consumers to obtain housing. Sub-leasing is common in rent-controlled cities.

Rent control will artificially destroy home values in Pacifica. Plummeting values will adversely impact our schools and city services. As home and apartment values decline, revenue from the county also declines. This will jeopardize the long term health of our schools and city infrastructure such as police, fire, and other services.

“Just Cause” Eviction will punish good renters in Pacifica.  “Just Cause” Eviction ordinances have the detrimental effect of making “good tenants” endure years of harassment, verbal abuse, inconvenience, or dangerous living circumstances where they live in close proximity to drug dealers, petty thieves, and lewd or offensive individuals.  Rarely will the “good tenants” testify in court for fear of their safety.  Instead, they will expect the property owner to handle the problem.  When it is not handled, the “good tenants” suffer.
“Just Cause” Eviction provisions dramatically increase the cost to evict problem tenants.  With “just cause” eviction, the property owner has to prove that “good cause” exists, which requires witnesses and additional trial time.  Under these circumstances, the problem tenant’s attorney often requests a jury trial, hoping they can persuade jurors, who are less accustomed to dealing with problem tenants.  In San Francisco, attorney’s fees can exceed $150,000.  These costs are passed on to the “good tenants” who suffer because “Just Cause” Eviction ordinances protect the “problem tenant” over the “good tenant.”
Month-to-Month leases will be made virtually obsolete in Pacifica.  While the tenant can serve the property owner with a 30 day notice, the property owner can only terminate the tenancy if the property owner can prove “just cause” in court.  And, while the “just cause” might very well exist, it is extremely difficult to prove this in court, particularly when the good tenants or neighbors are scared or intimidated by going to court and testifying against the problem tenant.
There is no need for “just cause” eviction legislation in Pacifica - evictions are already costly and time consuming processes for property owners.   Evictions can take several months and cost many thousands of dollars.  Tenants being evicted often do physical damage to the property.  For property owners, eviction is the final alternative to which they turn, not the first.
Gangs and criminal behavior thrive where “just cause” eviction ordinances are in place.  In areas where “Just Cause” Eviction ordinances are enacted, it is virtually impossible for property owners to evict gang members due to the burden of proof placed on the property owner.  In these situations, it is very unusual that a “good tenant,” who is witness to the activities of a gang member, will actually testify in court on what he or she has seen for fear of retribution.
Good renters in Pacifica will experience harassment under the “just cause” eviction ordinance.  The worst unintended consequence of all that will be created by this “Just Cause” eviction ordinances is when a property owner – facing tens of thousands of dollars in attorney’s fees and several months in uncollected rent – decides NOT to evict because of this ordinance and leaves the “problem tenant” alone to harass, disturb, threaten, intimidate, or leer at neighboring tenants and neighbors, commit petty crimes, deal drugs, and engage in gang activity.

John Keener, Mayor Pro Tem
(650) 557-9738
Sue Digre, Councilmember
(650) 278-1606
Deirdre Martin, Councilmember
(215) 806-8217
Mike O’Neill, Mayor
(650) 302-2470
Sue Vaterlaus, Councilmember
(650) 291-0470
Gina Zari
(650) 696-8209 |
850 Woodside Way, San Mateo, California 94401  |


Frank Vella said...

this was an excellent overview!

Thank you!

Anonymous said...

The realtors are scrambling. I guess that has to do with losing market share.

Many properties are being listed around town by out of town real estate offices.

Anonymous said...

It would be an interesting statistic to see who the top realtors are in Pacifica. Big Banker on riptide might have a handle on that. I see the classic 80/20 in this market, with 80% of the listings going to 20% of the brokers. And 20% of the remaining listings going to the remaining 80% of the brokers. Almost anyone can get a real estate license and sell their relative's or friend's properties, but whose signs do you see most often in town? Years of networking and years of being in town, having the name recognition usually pay off. I don't know that 10:57 means by "scrambling" and what that has to do with rent control. Maybe his or her eggs are scrambled?

Anonymous said...

San Bruno, South San Francisco, San Mateo are all run by realtors. The Pacifica realtors sent a shim sham scam man into City Council to talk about rent control. Already hearing about people boycotting the local realtors.

Cap'n RoyalGate said...

Who needs a reator to rent in pacifica? OUt of town agitators thats who.

get real said...

So the bottom line in Pacifica is; if you sell your home for the current fair market value you are an evil, greedy, selfish, capitalistic predator.
However, if you sell your home for no more than 10% above what you originally paid for it you are an enlightened, righteous and caring soul.
That means if you bought an average 3 bedroom Linda Mar rancher 15 years ago you would give up $500,000 profit and ask for no more than $220,000 from a prospective buyer.
Yea Right!!! What a bunch of fucking hypocrites.

Anonymous said...

renting at market value = greedy

selling at market value = no big whoop

Anonymous said...

Saturday in front of lindamar safeway there were two odd looking men who were trying to get signatures for instituting rent control in Pacifica. Another man was there in opposition. While I was signing the petition for NO RENT CONTROL, the other two men admitted to us while being recorded that they were card carrying communists who did not even live in Pacifica, Ca. So I wonder, who, what, why are outsiders trying to ruin Pacifica???